In accordance with the provisions of Announcement No. 23 of the State Administration of Taxation in 2016, please note in the remarks column: the name of the county (city, district) where the construction service occurs and the name of the project. If there is no remark, it is a non-compliant invoice, and the relevant input tax cannot be deducted. The relevant decoration expenses cannot be deducted before corporate income tax, and cannot be included in the amount of land value-added tax deduction items. Therefore, when we obtain a decoration service invoice that does not include the name and address of the project in the remarks column, we need to return the invoice and issue it again.
Accounting treatment of decoration expenses
The decoration expenses incurred by the enterprise are operated differently depending on the difference between renting and self-use. The specific accounting treatment is as follows:
1. If the enterprise repairs the rented office building:
(1) If the maintenance amount is small, the specific entries are:
Debit: management expenses-decoration expenses,< /p>
Loan: bank deposit,
(2) If the repair amount is large, it should be calculated through "long-term deferred expenses" and amortized on a periodic basis. The specific entries are:
< p>Debit: long-term deferred expenses - decoration expenses,Loan: bank deposits,
(3) When apportioning each month:
Debit: management Expenses—decoration expenses,
Loans: long-term deferred expenses—decoration expenses,
Legal basis:
《State Administration of Taxation’s Notice on Comprehensive Promotion of Business Tax Reform to Value-added Announcement of the Tax Pilot Program on Matters concerning the Collection and Administration of Tax Collection of Construction Services"
Article 4, paragraph 3, provides construction services. When taxpayers issue value-added tax invoices themselves or the tax authorities issue value-added tax invoices on their behalf, they should enter the remarks column in the invoice. Indicate the name of the county (city, district) where the construction services occur and the name of the project.